Quiznetik
Costing | Set 1
1. When amount deposited in a bank is withdrawn for financing a project, the losses of interest on bank deposits will be refered to as________
A. replacement cost
B. pre production cost
C. opprotunity cost
D. sunk cost
Correct : C. opprotunity cost
2. If there is increase in the size of inventory orders, total annual ordering cost will ____________
A. increase
B. decrease
C. remain same
D. change depending on other factors
Correct : B. decrease
3. Normal Ideal time______________
A. can not be avoided
B. can be controlled
C. can be minimised
D. can be avoided
Correct : A. can not be avoided
4. The distribution of overheads alloted to particular department or cost center over the units produced is called _____________
A. absorption
B. allocation
C. departmentalisation
D. apportionment
Correct : A. absorption
5. Prime cost + Over heads = __________
A. cost of sales
B. works cost
C. total cost
D. cost of production
Correct : C. total cost
6. Notional interest charged to owner for drawings income credited only in _____________
A. debtors accounts
B. cost accounts
C. final accounts
D. profit and loss accounts
Correct : B. cost accounts
7. A cost unit is _____________
A. a major of work output in a standard hour
B. the cost per unit of electricity consumed
C. a unit of product or service in relation to which costs are ascertained
D. the costs per hour of operating a machine
Correct : C. a unit of product or service in relation to which costs are ascertained
8. Material controls involves control over _____________
A. issue of material
B. consumption of material
C. purchase, storage and issue of materials
D. purchase of material
Correct : C. purchase, storage and issue of materials
9. An employee is eligible for getting overtime wage if he/ she works for more than ____________
A. 6 hours a day
B. 12 hours a day
C. 9 hours a day
D. 8 hours a day
Correct : C. 9 hours a day
10. If an item of overhead expenditure is charges specifically to a single department this would be an example of ____________
A. absorption
B. apportionment
C. reapportionment
D. allocation
Correct : D. allocation
11. The variables production overheads shall be absorbed in production cost based on ______________ capacity
A. normal
B. current
C. super normal
D. actual
Correct : D. actual
12. The basic rule of preparing the reconciliation statement is _______________
A. do as all has done
B. do as i have done
C. do as the other has done
D. do as you had done
Correct : C. do as the other has done
13. The three major elements of product costs are all except____________
A. factory overhead
B. indirect labour
C. direct material
D. direct labour
Correct : B. indirect labour
14. Material requisition is meant for _____________
A. purchase of material
B. sales of material
C. storage of material
D. supply of materials from stores
Correct : D. supply of materials from stores
15. Halsey premium plan is ____________
A. individual incentive scheme
B. group incentive scheme
C. differential piece wage system
D. time and piece wage system
Correct : A. individual incentive scheme
16. Which of the following is not a means whereby factory overheads can be charged out to production ?
A. over time rate
B. blanket rate
C. machine hour rate
D. direct labour rate
Correct : C. machine hour rate
17. Subsidy receivable with respect to any material shall be __________cost of material
A. reduced from
B. added to
C. divided to
D. multiplied to
Correct : A. reduced from
18. ____________ may be valued on a FIF basis in cost accouts and LIFO basis in financial accounts.
A. direct expenses
B. administrative expenses
C. raw materials
D. labour
Correct : C. raw materials
19. Indirect cost are known as ______
A. variable cost
B. overheads
C. none of the above
D. fixed cost
Correct : B. overheads
20. Material is issued by store keeper against _____________
A. material requisition
B. purchase requisition
C. material order
D. goods received notes
Correct : A. material requisition
21. Number of methods avaliable for calculation of labour turn over is ________________
A. forth
B. three
C. five
D. two
Correct : B. three
22. Which of the following bases is not a appropriate for apportionment of transport department cost ?
A. crane value
B. crane hours
C. truck milage
D. truch value
Correct : A. crane value
23. Labour costs __________Salaries and wages paid to temporary employees.
A. written
B. includes
C. mentioned
D. excludes
Correct : B. includes
24. Which of the following is not an example of marketing overheads ?
A. salaries of sales staff
B. secondary packing charges
C. salary of the foreman
D. publicity expenses
Correct : C. salary of the foreman
25. The document which is prepared after receiving and inspecting material _____________
A. goods received note
B. inventory record
C. material record note
D. bill of material
Correct : A. goods received note